Auto India

With rupee again crossing 65 mark against dollar, Finance Minister P. Chidambaram on Tuesday said the currency is undervalued and hoped it will find its appropriate level.

"The rupee has overshot its true level, it is undervalued. We have to be patient, be firm, do whatever is required to be done and rupee will find its appropriate level," he told reporters in Delhi.

"Every emerging market is challenged today. India is also challenged and the impact is also felt on the equity market as well as on the currency market," he said.

Mr. Chidambaram further said the fiscal deficit would be contained at 4.8 per cent of the GDP even after doling out subsidies for the implementation of the Food Security Bill.

"(Fiscal deficit of) 4.8 per cent of GDP and the absolute number indicated in the budget is a red line and the red line will not be breached. We have provided enough money for the cost of the food security programme for the remainder of the current fiscal.

"As the roll out takes place in the States, money will be provided. We think that after providing for the Food Bill we will still remain in the limit we have set for ourselves in the budget papers," he said.